If Trump wants to clobber automakers, he sure knows how to do it. 
Aluminum and Steel Imports
- The US relies on aluminum imports from countries including Canada, the United Arab Emirates and Mexico, to meet the vast majority of demand — net imports added up to more than 80% in 2023, according to Morgan Stanley.
- Steel imports account for a smaller portion of overall consumption, but are vital for sectors leaning on specialty grades, including aerospace, auto manufacturing and energy, from wind developers to oil drillers.
50 Percent Tariffs on Canada Steel and Aluminum
Despite desperate please for carve-outs, Trump Says He Will Raise Canada Steel and Aluminum Tariffs to 50 Percent
President Trump upped the ante on his steel and aluminum tariffs on Tuesday, saying in an online post that he would increase the planned 25% rate on Canada’s metals to 50% in response to its retaliation to his previous trade moves.
Trump said that Canada’s recent move to place an export tax on electricity flowing to the U.S., along with longstanding dairy industry trade disputes, would mean that tariffs on its metals would be higher. Canada is the U.S.’s top supplier of foreign steel and aluminum.
“We will not back down. We will be relentless,” Doug Ford, the premier of Canada’s most-populous province, Ontario, told MSNBC on Tuesday. Ford on Monday imposed a 25% surcharge on electricity shipped from the province to New York, Michigan and Minnesota, affecting 1.5 million households and businesses.
Later, in an interview on CNBC, Ford said he would consider cutting the electricity his province supplies to the U.S. if the Trump administration continues to escalate a trade war.
“Is it a tool in our tool kit? 100%,” Ford said. “And as he continues to hurt Canadian families, Ontario families, I won’t hesitate to do that. That’s the last thing I want to do. I apologize to the American people. There’s one person to be blamed, and that’s President Trump.”
Automakers and metals companies like Alcoa with footprints in multiple countries have also sought carve-outs or delays from the Trump administration, according to people with knowledge of the requests. But the administration has been steadfast that it will not allow for any carve-outs this time.
Last week, CEOs from eight U.S. steel companies, including U.S. Steel and Cleveland Cliffs, sent a letter to Trump urging him “to resist any requests for exceptions or exclusions and to continue standing strong on behalf of American steel.”
Union vs Union
The steelmakers want these tariffs the automakers and anyone with an ounce of common sense doesn’t.
I discussed the setup in Trump Claims Tariffs Will Make U.S. Steel Great Again, He’s Very Wrong
Cleveland Cliffs Earnings Statement: “We like higher prices. That’s the best thing for our companies, the best thing for our employees, the best thing for our shareholders. So, that’s why we push prices up. We go until we can’t go no more.”
Regarding the merger of US Steel with Nippon, automakers wrote to Congress, complaining that the combined company would control 65-90% of automotive steel.
It’s a steel monopoly that is the national security risk, not the Nippon merger.
Trump Temper Tantrum TTTtm
If you are a stock market bear who does not care about lasting damage, then you may be amused by this Trump Temper Tantrum TTTtm on Truth Social.
Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!
What a Proverbial Hoot!
Speaking about impacting the lives of innocent people, what the hell is Trump doing?
In case you missed it, please see How One Small Business Owner Is Coping With Trump’s Tariffs
Meet Daniel Rogge, CEO of Tormach, a machine-tool maker.
Tormach Coping Synopsis
- Reducing spending on marketing by 25%
- Reduce 401(k) retirement savings plan match
- Eliminating work-from-home stipends and anniversary bonuses
- Shift focus to foreign sales to take advantage of Mexico’s stability and free trade
Multiply that by tens of thousands of small businesses.
Fifty-four percent of small businesses polled said that tariffs would negatively affect their companies, while just 11 percent said they would benefit.
Escalating Trade Wars
Perhaps Canada should shut off all aluminum exports to the US. Wouldn’t that be a hoot?
I am not in favor of escalating tariffs, because nobody wins trade wars. But the fact is countries do respond.
Trump started this mess despite having a good trade deal in place called USMCA.
Related Posts
February 2, 2025: What’s the Impact on CPI Inflation and GDP of Trump’s Global Trade War?
Canada and Mexico plan precision responses to Trump’s tariffs. What about prices and GDP?
One reader commented “Roughly 75-80% of the things Canada and Mexico make come to the USA. Only 24-28% of the things we import come from Canada/Mexico. Can you say leverage?”
I responded “We lose 25% and they lose 75%. Fools label this winning”.
February 11, 2025: Trump’s Steel Tariffs Now Will Work as Good as the First Time
Q: How’s that? A: Very poorly.
On some products, American businesses pay 40 percent more for similar steel compared to their European counterparts — an unsustainable situation for any U.S. employer.
February 17, 2025: Five Republican Senators Caution Trump about Pain from Tariffs
Senators warn Trump, but Trump won’t listen.
February 26, 2025: Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
Trump says it’s full speed ahead with tariffs. It will cost US jobs.
The reinstitution of aluminum and steel tariffs across the board is in direct violation of Trump’s loudly bragged USMCA “Best Trade Deal in History”.
The US already has the among the highest prices for steel in the world. The last thing the US needs is higher prices for cars that are already hugely unaffordable.
Even the autoworkers’ unions see that.
Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
On March 9, I commented Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
Trump is complaining about Canada’s cheese tariffs. In 2018, he was bragging about cheese.
Trump has proven ability to repeatedly make the same mistakes, needlessly taunt allies, and violate his own treaties.
Expect more inappropriate and destructive TTTs because they are coming.
As I said on March 4, A Global Trade War Has Started – Global Recession Will Follow
Welcome to the global recession.
Has anyone carefully examined the tariffs imposed by Canada on US goods? Does anyone care? This kind of trade war has been simmering for decades. Ask the lumber produces in the US southern states. Ask the poultry producers in the US. Then get back and do a real discussion.
a hundred thumbs up!
No one in their right mind wants to consume US food. Hormones, steroids, GMO, etc.
Look at this comparison pic to see the result of US food vs Ukrainian:
https://x.com/KarinaVinnikova/status/1899527063909867822
Automakers are already getting clobbered. They have a lot of over stock as people aren’t buying cars due to prices and interest rates. I want a new car but won’t pay the prices. The cost of a 6 cylinder mid SUV with safety features is ridiculous. I’m not concerned about interest rates as we can pay cash. We have a 9 year old Subaru in good shape with less than 55,000 miles so we can afford to wait.
So far, Trump has destroyed $4 trillion market valuation by showcasing his ignorance of economics. Let’s see how long American stockholders are going to watch this shit show with equanimity. It’s their retirement money Trump is destroying without any rhyme or reason.
And mine, the other side of the Atlantic. That wan**r has cost me serious money the last week. And I don’t even get to vote.
I responded “We lose 25% and they lose 75%. Fools label this winning”
Mish, if your net worth goes up 100% and everyone else’s goes up 200%, did you win or lose? I say you lost. If you lose 25% of your money and everyone else loses 75%, did you lose? I say you won. Isn’t wealth relative? We all compete for goods and services within our borders so for sure wealth is relative. At the national level, countries also compete for raw materials, technology, food, etc. As a nation, we become relatively wealthier than other countries.
What am I missing here? Am I also a fool?
As consumers we will face tariffs and prices will rise. Industries will become inefficient because they are protected and no longer have to compete on the world stage.
I’m against tariffs long term for sure. Short term they seem effective for negotiations. No doubt Trump understands leverage better than probably any other president in history.
Canada caves. And Trump wins again! But no surprise really. Of course not everyone can win a war on tariffs. Against the US, there are only going to be losers.
An interesting spin. Actually, Trump caves.
Lets review the sequence of events:
1. On the weekend Trump says 25% tariffs on Canadian steel and aluminum will take effect this week.
2. On Monday, Ford puts a 25% export tax on electricity to 3 states.
3. Trump then increases the tariffs to 50%.
4. Ford says: I don’t care. The export tax stays until the steel and aluminum tariffs are removed.
5. Lutnick calls Ford and agrees to remove the steel and aluminum tariffs if he drops the export tax.
6. Ford agrees.
7. A win for Ford.
Lol, you liberals truly live in an alternate universe.
Did you know that Michigan and Minn. only imported 1% of its power from Ontario in 2024? Did you catch the part where Trump invited them to become the 51st state again?
Yep. The electricity tax was truly a nothing burger, yet it was enough to get Trump to cave on his steel and aluminum tariffs. Lol! What a display of backing down by Trump! Thanks for pointing that out!
Yep. I see Trump continues to insult and belittle Canadians. Which will unite them in their new found unity against all things American. Brilliant strategy!
Do PapaDave’s comments override Mishtalk’s comments?
oops, already changed his mind on that. the latest is he said the higher tariffs may not go into effect, and ontario said Lutnick agreed to talk and so Ontario suspended the electricity surcharges.
Tariff clown strokes again.and again and again.
seriously why would ANYONE listen to a word he says??
Whatever happened to recycling? Is that no longer in fashion?
All these graphs, they are not permanent, one ccountry goes up, another goes down; it’s called change, get used to it.
I didn’t know we had eight steel companies in the U.S.
The US is one of the leading exporters of steel scrap worldwide. Stop exporting and sell nationally. There is also the potential to increase recycling aluminum or just make our own which we should have done already. We are going to run short on frying pans to bop people with TDS over the head.
“We lose 25% and they lose 75%. Fools label this winning”
I might say it more nicely, but yeah. Brief but accurate.
Apparently Lutnick reached out to Ford and asked him to reconsider the electricity tariffs and offered to start negotiating a new USMCA. Ford agreed.
Dang. This was just getting good!
Did Canada’s Ford, while drunk, curse Americans. It that’s the same fat guy, or his fat bros ???
Don’t undersell this. More likely we’re looking at a deflationary collapse as people/businesses stop spending. Global depression here we come. Thanks Trump and Elon!
Screeching intensifies. market up across the board. yields as well. Maybe tomorrow.
Ha ha, this stuff is hilarious
You chide someone for pointing out the possibility of a global depression (in the future) by quoting currently increasing stock indices. And then they immediately turn around to go negative again.
If those are your best arguments, maybe you should post after 4pm everyday
Like a 20 point drop in DJIA 40 years ago. Oooooh Nooooo!
I’m actually looking forward to it – COVID was wonderful for me, and I’m sure a global depression will work out just dandy too for yours truly.
Australia is the biggest producer of bauxite and iron ore.
I think Indonesia might disagree on that, at least for Bauxite.
Ok fine. But I’m waiting for your review of Judge Ali’s new PI on the Stoppage of USAID aid.
A decision where most of the language in the 48 page order was about the limitations of the his courts authority.
A decision where he denied nearly ALL of the requested relief.
A decision where he did not order the payment of a single dime.
A decision where he gave the parties a month to work it out.
It was so obvious with 4 vigorous dissents exactly what was happening here. They gave the Judge enough rope to hang himself. He chose not to do so, restored order, admitted his scope of authority did not permit granting the relief sought and put the ball squarely back in the Administrations court to decide if they want to appeal.
My guess is they won’t. They will figure out what past due money is owed to the specific groups that sued, make sure the ‘work’ was done, and pay that out.
For Judge Ali it was a great lesson in SCOTUS jurisprudence. Maybe for your ‘expert’ as well.
As I said from the start, (and it’s rare I’ll give you that) you all got this one wrong.
Ukraine ready to accept US proposal for 30 day Truce. More peace through strength. Nobel coming.
It’s all deckchairs, mate.
TSLA popped up without completely closing Oct 23/24 gap. Gaps are support/resistance.
If Trump can do it to “our best friend” Canada imagine what he can do to China !
I think it’s adorable that Trump is going after Thomas Massie because Massie refuses to keep USAID funding and all of the other DOGE identified nonsense exactly where it is.
Patience will be lost and a binge spending democratic majority will be voted right in as soon as we hit a recession, and he’s working hard to make that a reality.
Cheer up Mish. Egg prices dropped another 10% today. They are now lower than Jan 1. Youre welcome.
Somebody’s bought shares in chickenfeed…